She’s taking his stance.
On Saturday, Vice President Kamala Harris announced her intention to remove taxes on tipped wages for service workers, echoing a proposal previously made by former President Donald Trump. During a rally in Las Vegas with her running mate, Minnesota Governor Tim Walz, Harris emphasized her support for policies benefiting workers, including a commitment to eliminate tip taxes and raise the minimum wage.
Harris clarified that her plan to abolish taxes on tips would require new legislation. She stated that if elected president, she would collaborate with Congress to develop a proposal that includes income limits and measures to prevent high-income earners from exploiting the policy. Her approach aims to align with broader efforts to improve worker compensation.
Trump responded to Harris’s announcement by accusing her of copying his policy for political purposes. He highlighted that he first introduced the idea at a rally in Las Vegas in June, though details about his plan were limited. His proposal has since faced mixed reactions from Republicans and workers, with some questioning the impact on national debt and fairness, while others favor wage increases over tax relief.
In addition, several congressional Republicans have proposed bills to exempt tip income, but the idea has met with skepticism from both political and labor groups. A Yale University analysis of a related bill showed it would primarily benefit a small segment of low-income workers.
Lael Brainard, director of the White House National Economic Council, responded by promoting President Joe Biden’s focus on raising the minimum wage and enhancing overtime protections as more effective solutions for improving worker income. She noted that these measures would provide a more substantial benefit to workers compared to the tax relief on tips.
